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ACCT 2302, Spring 2020 SEMESTER PROJECT Due: March 24, 2020 1. Given the below information from the books of Major Manufacturing Company, prepare the following component budgets for the quarter July to September, 2020 only: Sales Cash Receipts from sales Production Materials Cash disbursement to suppliers Labor (wages/salaries) Manufacturing overhead Selling and administr Dividends and Taxati . Fixed assets acquisition Cash book (No Budgeted Income Statement or Budgeted Balance Sheet required.) dministri Font ble Sales Major Manufacturing Company budgeted sales of its only product, for the rest of 2019 is as follows: July 21,000 units, increasing by 10% monthly through October and by 20% in November and December. Selling price budgeted at $8.50 per unit July to November, increasing to $9.50 per unit in December Schedule of Cash collections. 20% of sales are for cash and the remainder is credit sales. The company collects 40% of the credit sales in the month of sale, 55% collected the following month, the remaining 5% is uncollectable. (This uncollectable is processed at point of sale). The accounts receivable balance on June 30, 2019 was $78.300. Production Budget The company desires to have inventory on hand at the end of each month equal to 20% of the following month's budgeted unit sales. On July 1, 2019 beginning inventory was 4,200 units. Direct Materials Budget 0.5 lbs. of material required per unit of product. Management plans to hold 15% of the following month's requirement as closing raw materials inventory every month. Beginning materials inventory was 1,600 pounds on June 30, 2019. Unit cost of materials is $3.40 per pound. Schedule of Cash Disbursement 60% of the month's purchases are paid for in month of purchase, and the balance paid on the following month. No discounts are available for early payment The accounts payable balance is $6,800 as at June 30, 2019. Direct Labor Budget Each unit produced requires 0.2 hrs. of direct labor Each labor hour cost $15 Labor is allocated to work according to needs. Manufacturing Overhead Budget Variable M/OH is $2 per DLH. Fixed manufacturing overhead is $35,000 per month, including $12,500 in depreciation. (Not a cash outflow). Selling and Administration Expense Budget Variable selling and administration expenses are $0.30 per unit sold. Fixed selling and administration expenses are $15,000 per month, including $3,000 in depreciation. Cash Budget 1. A line of credit is approved by company bankers, allowing the borrowing of up to $100,000, if required. All borrowing will occur at the beginning of the month, and all repayments occur at the end of the quarter. The loan interest rate is 0.75% of outstanding amount per month (9% per annum). Loan amount will be in multiple of $10,000. 2. The bank desires a cash balance of at least $20,000 at the end of each month. Beginning cash balance on 8/01, 2019 was $155,800. 3. Cash dividend of $30,000 is to be paid to stockholders in September, 2019. 4. Total equipment purchases of $120,000 are scheduled for, July $45,000 and August $75,000. No depreciation charges will be recorded until the machines are commissioned in September 1, 2019. Annual depreciation rate of 10% of cost will be charged, monthly 5. The sale of the used equipment, is estimated to fetch $25,000 cash in September, 2019. 6. The estimated income tax payment due on 7/30/2019 is $35,000. Note: 1. It is advised that you use excel spreadsheet for this work. 2. You will be marked down for poor or untidy presentation. 3. You may include supporting notes, if you think them necessary. (They are however not a requirement). 1 Student's Name: ACCT. 2302, Principles of Managerial Accounting SPRING Semester, 2020 Semester Project, Summer 2, 201 MASTER BUDGET - Major Manufacturing Company Sales Budget: July August September October luly to Sept. July August September July to Sept. Units Unit price Sales revenue Manufacturing Overhead Budget Direct labor hours Overhead absorption rate Total variable Total fixed Total Cash Collection from sales Accounts receivable Cash sales Cash from Credit sales Total cash collection Selling and Administration Budga Units sold Variable overhead cost/unit Total variable cost Fixed 15 Accounts receivable, 55% of credit sales Uncollectibles (5% of credit sales) 18 Production Budget (estimated units) Capital Budget Revenue Expenses Ending balance Sales Total requirement (Beginning balance units) Production required Unit materials required (lbs.) Total materials required (lbs.) Others Cash-related Dividend payable Taxation Direct materials budget Ending materials balance Materials requirement (units) Total materials needs (units) (Beginning balance) Required purchase (units) Cost per unit Total cost of purchase CASH BOOK BUDGET Receipts: Beginning balance Receipts from sales Asset sale Total receipts Cash Disbursement Schedule Accounts payable Current purchases Payments: Materials purchases Direct labor Manufacturing overhead Selling and administration costs Machinery purchase Dividend payment Income tax payment Direct Labor Budger Monthly Production Labor required/unit Total labor hours Rate/hour Total labor cost NOTES (if required) Sub-total payments Receipts less payments Bank credit (loan) Loan interest payment Loan repayment Ending Balance ACCT 2302, Spring 2020 SEMESTER PROJECT Due: March 24, 2020 1. Given the below information from the books of Major Manufacturing Company, prepare the following component budgets for the quarter July to September, 2020 only: Sales Cash Receipts from sales Production Materials Cash disbursement to suppliers Labor (wages/salaries) Manufacturing overhead Selling and administr Dividends and Taxati Font le Fixed assets acquisition Cash book (No Budgeted Income Statement or Budgeted Balance Sheet required.) Saleh Major Manufacturing Company budgeted sales of its only product, for the rest of 2019 is as follows: July 21,000 units, increasing by 10% monthly through October and by 20% in November and December Selling price budgeted at $8.50 per unit July to November, increasing to $9.50 per unit in December Schedule of Cash collections. 20% of sales are for cash and the remainder is credit sales. The company collects 40% of the credit sales in the month of sale, 55% collected the following month, the remaining 5% is uncollectable. (This uncollectable is processed at point of sale). The accounts receivable balance on June 30, 2019 was $78,300. Production Budget The company desires to have inventory on hand at the end of each month equal to 20% of the following month's budgeted unit sales. On July 1, 2019 beginning inventory was 4,200 units. Direct Materials Budget 0.5 lbs. of material required per unit of product Management plans to hold 15% of the following month's requirement as closing raw materials inventory every month. Beginning materials inventory was 1,600 pounds on June 30, 2019. Unit cost of materials is $3.40 per pound. Schedule of Cash Disbursement 60% of the month's purchases are paid for in month of purchase, and the balance paid on the following month No discounts are available for early payment The accounts payable balance is $6,800 as at June 30, 2019. Direct Labor Budget Each unit produced requires 0.2 hrs. of direct labor Each labor hour cost SIS Labor is allocated to work according to needs. Manufacturing Overhead Budget Variable M/OH is $2 per DLH. Fixed manufacturing overhead is $35,000 per month, including $12,500 in depreciation. (Not a cash outflow). Selling and Administration Expense Budget Variable selling and administration expenses are $0.30 per unit sold. Fixed selling and administration expenses are $15,000 per month, including $3,000 in depreciation. Cash Budget 1. A line of credit is approved by company bankers, allowing the borrowing of up to $100,000, if required. All borrowing will occur at the beginning of the month, and all repayments occur at the end of the quarter. The loan interest rate is 0.75% of outstanding amount per month (9% per annum). Loan amount will be in multiple of $10,000. 2. The bank desires a cash balance of at least $20,000 at the end of each month. Beginning cash balance on 8/01, 2019 was $155,800. 3. Cash dividend of $30,000 is to be paid to stockholders in September, 2019. 4. Total equipment purchases of $120,000 are scheduled for, July $45,000 and August $75,000. No depreciation charges will be recorded until the machines are commissioned in September 1, 2019. Annual depreciation rate of 10% of cost will be charged, monthly 5. The sale of the used equipment, is estimated to fetch $25,000 cash in September, 2019. 6. The estimated income tax payment due on 7/30/2019 is $35,000. Note: 1. It is advised that you use excel spreadsheet for this work. 2. You will be marked down for poor or untidy presentation. 3. You may include supporting notes, if you think them necessary. (They are however not a requirement). 1 Student's NANG ACCT. 202, Principles of Managerial Accounting SPRING Semester, 2020 Semester Project, Summer 2, 2011 MASTER BUDGET - Major Manufacturing Company 4 Sales Budget July August September October luly to Sept. July August September July to Sepe Unit price Sales Manufacturing Owerhed udget Direct labor hours Overhead absorption rate Total variable Total fired 9 Cash Collection from sales Accounts receivable Cash sales Cash from Credit sales Taral collection Sdling and Administration Budga Units sold Variable overhead costumi Total variable cost Fixed IS A collecties 39% of c ar sales of credit sales) 18 Product B e nimar Ending balance 191 Capital Bander Revenue Expenses Total requirement (Beginning units) Production required Unit materials required (lbs) Total materials required (lbs Others Cash-related Dividend payable 26 Direct materials budget Ending material balance Materials requirement units) Total marials and (Beginning balance) Required purchase (units) Cost per unit Total cost of purchase CASH BOOK BUDGET Rents: Beginning balance Receipts from sales Asset sale Totales 32 Casle Disbursement Schedule Accounts payable Current purchases Peme: Materials purchases Direct labor Manufacturing overhead Selling and ministration costs Machinery purchase Dividend payment Income tax payment 38 Xirect Labor Budger Monthly Production Labor required/unit Total labor hours Ratehour Total Iberos 44 NOTES & wired Sub total Receipts les payments Bank credit (loan) Lean interest payment Lowepryment Endling Balance . A ACCT 2302, Spring 2020 SEMESTER PROJECT Due: March 24, 2020 1. Given the below information from the books of Major Manufacturing Company, prepare the following component budgets for the quarter July to September, 2020 only: Sales Cash Receipts from sales Production Materials Cash disbursement to suppliers Labor (wages/salaries) Manufacturing overhead Selling and administr Dividends and Taxati . Fixed assets acquisition Cash book (No Budgeted Income Statement or Budgeted Balance Sheet required.) dministri Font ble Sales Major Manufacturing Company budgeted sales of its only product, for the rest of 2019 is as follows: July 21,000 units, increasing by 10% monthly through October and by 20% in November and December. Selling price budgeted at $8.50 per unit July to November, increasing to $9.50 per unit in December Schedule of Cash collections. 20% of sales are for cash and the remainder is credit sales. The company collects 40% of the credit sales in the month of sale, 55% collected the following month, the remaining 5% is uncollectable. (This uncollectable is processed at point of sale). The accounts receivable balance on June 30, 2019 was $78.300. Production Budget The company desires to have inventory on hand at the end of each month equal to 20% of the following month's budgeted unit sales. On July 1, 2019 beginning inventory was 4,200 units. Direct Materials Budget 0.5 lbs. of material required per unit of product. Management plans to hold 15% of the following month's requirement as closing raw materials inventory every month. Beginning materials inventory was 1,600 pounds on June 30, 2019. Unit cost of materials is $3.40 per pound. Schedule of Cash Disbursement 60% of the month's purchases are paid for in month of purchase, and the balance paid on the following month. No discounts are available for early payment The accounts payable balance is $6,800 as at June 30, 2019. Direct Labor Budget Each unit produced requires 0.2 hrs. of direct labor Each labor hour cost $15 Labor is allocated to work according to needs. Manufacturing Overhead Budget Variable M/OH is $2 per DLH. Fixed manufacturing overhead is $35,000 per month, including $12,500 in depreciation. (Not a cash outflow). Selling and Administration Expense Budget Variable selling and administration expenses are $0.30 per unit sold. Fixed selling and administration expenses are $15,000 per month, including $3,000 in depreciation. Cash Budget 1. A line of credit is approved by company bankers, allowing the borrowing of up to $100,000, if required. All borrowing will occur at the beginning of the month, and all repayments occur at the end of the quarter. The loan interest rate is 0.75% of outstanding amount per month (9% per annum). Loan amount will be in multiple of $10,000. 2. The bank desires a cash balance of at least $20,000 at the end of each month. Beginning cash balance on 8/01, 2019 was $155,800. 3. Cash dividend of $30,000 is to be paid to stockholders in September, 2019. 4. Total equipment purchases of $120,000 are scheduled for, July $45,000 and August $75,000. No depreciation charges will be recorded until the machines are commissioned in September 1, 2019. Annual depreciation rate of 10% of cost will be charged, monthly 5. The sale of the used equipment, is estimated to fetch $25,000 cash in September, 2019. 6. The estimated income tax payment due on 7/30/2019 is $35,000. Note: 1. It is advised that you use excel spreadsheet for this work. 2. You will be marked down for poor or untidy presentation. 3. You may include supporting notes, if you think them necessary. (They are however not a requirement). 1 Student's Name: ACCT. 2302, Principles of Managerial Accounting SPRING Semester, 2020 Semester Project, Summer 2, 201 MASTER BUDGET - Major Manufacturing Company Sales Budget: July August September October luly to Sept. July August September July to Sept. Units Unit price Sales revenue Manufacturing Overhead Budget Direct labor hours Overhead absorption rate Total variable Total fixed Total Cash Collection from sales Accounts receivable Cash sales Cash from Credit sales Total cash collection Selling and Administration Budga Units sold Variable overhead cost/unit Total variable cost Fixed 15 Accounts receivable, 55% of credit sales Uncollectibles (5% of credit sales) 18 Production Budget (estimated units) Capital Budget Revenue Expenses Ending balance Sales Total requirement (Beginning balance units) Production required Unit materials required (lbs.) Total materials required (lbs.) Others Cash-related Dividend payable Taxation Direct materials budget Ending materials balance Materials requirement (units) Total materials needs (units) (Beginning balance) Required purchase (units) Cost per unit Total cost of purchase CASH BOOK BUDGET Receipts: Beginning balance Receipts from sales Asset sale Total receipts Cash Disbursement Schedule Accounts payable Current purchases Payments: Materials purchases Direct labor Manufacturing overhead Selling and administration costs Machinery purchase Dividend payment Income tax payment Direct Labor Budger Monthly Production Labor required/unit Total labor hours Rate/hour Total labor cost NOTES (if required) Sub-total payments Receipts less payments Bank credit (loan) Loan interest payment Loan repayment Ending Balance ACCT 2302, Spring 2020 SEMESTER PROJECT Due: March 24, 2020 1. Given the below information from the books of Major Manufacturing Company, prepare the following component budgets for the quarter July to September, 2020 only: Sales Cash Receipts from sales Production Materials Cash disbursement to suppliers Labor (wages/salaries) Manufacturing overhead Selling and administr Dividends and Taxati Font le Fixed assets acquisition Cash book (No Budgeted Income Statement or Budgeted Balance Sheet required.) Saleh Major Manufacturing Company budgeted sales of its only product, for the rest of 2019 is as follows: July 21,000 units, increasing by 10% monthly through October and by 20% in November and December Selling price budgeted at $8.50 per unit July to November, increasing to $9.50 per unit in December Schedule of Cash collections. 20% of sales are for cash and the remainder is credit sales. The company collects 40% of the credit sales in the month of sale, 55% collected the following month, the remaining 5% is uncollectable. (This uncollectable is processed at point of sale). The accounts receivable balance on June 30, 2019 was $78,300. Production Budget The company desires to have inventory on hand at the end of each month equal to 20% of the following month's budgeted unit sales. On July 1, 2019 beginning inventory was 4,200 units. Direct Materials Budget 0.5 lbs. of material required per unit of product Management plans to hold 15% of the following month's requirement as closing raw materials inventory every month. Beginning materials inventory was 1,600 pounds on June 30, 2019. Unit cost of materials is $3.40 per pound. Schedule of Cash Disbursement 60% of the month's purchases are paid for in month of purchase, and the balance paid on the following month No discounts are available for early payment The accounts payable balance is $6,800 as at June 30, 2019. Direct Labor Budget Each unit produced requires 0.2 hrs. of direct labor Each labor hour cost SIS Labor is allocated to work according to needs. Manufacturing Overhead Budget Variable M/OH is $2 per DLH. Fixed manufacturing overhead is $35,000 per month, including $12,500 in depreciation. (Not a cash outflow). Selling and Administration Expense Budget Variable selling and administration expenses are $0.30 per unit sold. Fixed selling and administration expenses are $15,000 per month, including $3,000 in depreciation. Cash Budget 1. A line of credit is approved by company bankers, allowing the borrowing of up to $100,000, if required. All borrowing will occur at the beginning of the month, and all repayments occur at the end of the quarter. The loan interest rate is 0.75% of outstanding amount per month (9% per annum). Loan amount will be in multiple of $10,000. 2. The bank desires a cash balance of at least $20,000 at the end of each month. Beginning cash balance on 8/01, 2019 was $155,800. 3. Cash dividend of $30,000 is to be paid to stockholders in September, 2019. 4. Total equipment purchases of $120,000 are scheduled for, July $45,000 and August $75,000. No depreciation charges will be recorded until the machines are commissioned in September 1, 2019. Annual depreciation rate of 10% of cost will be charged, monthly 5. The sale of the used equipment, is estimated to fetch $25,000 cash in September, 2019. 6. The estimated income tax payment due on 7/30/2019 is $35,000. Note: 1. It is advised that you use excel spreadsheet for this work. 2. You will be marked down for poor or untidy presentation. 3. You may include supporting notes, if you think them necessary. (They are however not a requirement). 1 Student's NANG ACCT. 202, Principles of Managerial Accounting SPRING Semester, 2020 Semester Project, Summer 2, 2011 MASTER BUDGET - Major Manufacturing Company 4 Sales Budget July August September October luly to Sept. July August September July to Sepe Unit price Sales Manufacturing Owerhed udget Direct labor hours Overhead absorption rate Total variable Total fired 9 Cash Collection from sales Accounts receivable Cash sales Cash from Credit sales Taral collection Sdling and Administration Budga Units sold Variable overhead costumi Total variable cost Fixed IS A collecties 39% of c ar sales of credit sales) 18 Product B e nimar Ending balance 191 Capital Bander Revenue Expenses Total requirement (Beginning units) Production required Unit materials required (lbs) Total materials required (lbs Others Cash-related Dividend payable 26 Direct materials budget Ending material balance Materials requirement units) Total marials and (Beginning balance) Required purchase (units) Cost per unit Total cost of purchase CASH BOOK BUDGET Rents: Beginning balance Receipts from sales Asset sale Totales 32 Casle Disbursement Schedule Accounts payable Current purchases Peme: Materials purchases Direct labor Manufacturing overhead Selling and ministration costs Machinery purchase Dividend payment Income tax payment 38 Xirect Labor Budger Monthly Production Labor required/unit Total labor hours Ratehour Total Iberos 44 NOTES & wired Sub total Receipts les payments Bank credit (loan) Lean interest payment Lowepryment Endling Balance . 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